INTU Dividend Type Payments

Intuit Inc. dividend

Although INTU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Intuit Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Intuit Inc. (INTU)
Bid Ask Last Change Volume P/E Market Cap
610.00 651.00 613.21 +1.72 902K 63 171B

INTU Dividend-Like Income Using Covered Calls

With INTU at 613.21, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 18.40 5.0
5% 30.66 8.4
10% 61.32 16.8

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On INTU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 650.00 1.60 10 6.0 0.00 (0.0%)
May 3 655.00 2.65 17 15.6 4.00 (0.7%)
5% Yield On INTU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 655.00 1.15 10 11.5 4.00 (0.7%)
May 3 655.00 2.65 17 15.6 4.00 (0.7%)
10% Yield On INTU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 650.00 7.50 31 21.0 0.00 (0.0%)
May 24 650.00 9.30 38 21.8 0.00 (0.0%)

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